Australia's cattle prices decline on dry weather

In what could be a chilling portent for grain growers, marketing concern Meat & Livestock Australia Ltd. Friday (August 14) reported that a lack of worthwhile rain across much of New South Wales and southern Queensland in the past six weeks and predictions of a developing El Nino event are pressuring livestock markets downwards.

Concerns regarding the season are increasing sales of grown cattle from properties, dampening interest from buyers that want to restock properties and reducing stock quality, MLA reported in a weekly market review.

Cattle are grazed in many of the same districts used to grow winter crops, including wheat.

Price falls of 2 percent to 3 percent on week were reported for various categories of cattle across most states, bucking a normal seasonal trend of rising prices particularly for export animals, leaving rates 5-9 percent below year-ago levels, MLA reported.

El Nino events are usually but not always associated with below normal rainfall in the second half of the year across large parts of southern and inland eastern Australia.

Grain industry participants say they want decent rain in all districts this month to set crops up for the spring growth period ahead of harvest mostly in November and December.